Bitcoin price recovered recently above $7,900 and $8,000 against the US Dollar.The price failed to stay above $8,000, formed a swing high at $8,080, and recently declined below $7,900.There is a key breakout pattern forming with resistance near $7,940 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair is currently under pressure and there is a risk of more losses below the $7,800 support.Bitcoin price failed to gain momentum above $8,000 and declined recently against the US Dollar. BTC is currently approaching the next break and it might breakdown if the bulls struggle near $7,950.Bitcoin Price AnalysisRecently, bitcoin price started a decent recovery above $7,800 and $7,900 against the US Dollar. The BTC/USD pair even broke the $8,000 barrier and the 100 hourly simple moving average. However, the price failed to gain bullish momentum and formed a swing high at $8,080. As a result, there was a fresh decline below the $8,000 support area. The price broke the 23.6% Fib retracement level of the recent recovery from the $7,520 swing low to $8,080 high.There was also a spike below $7,900 and the 50% Fib retracement level of the recent recovery from the $7,520 swing low to $8,080 high. Finally, the price broke the $7,800 support area before the bulls took a stand near the $7,750 level. Moreover, the 61.8% Fib retracement level of the recent recovery from the $7,520 swing low to $8,080 high acted as a strong support. At the moment, the price is trading above $7,800 and the 100 hourly SMA. More importantly, there is a key breakout pattern forming with resistance near $7,940 on the hourly chart of the BTC/USD pair.Therefore, the pair seems to be preparing for the next break either above $7,950 and $8,000 or below $7,800. If there is an upside break above $8,000, the price is likely to climb further higher. A follow through above $8,080 is likely to put the bulls in control. The next important resistance is near the $8,200 level. On the downside, an initial support is near the $7,800, below which the price could decline again towards $7,600.Looking at the chart, bitcoin price is showing a few bearish signs below $8,000 and $7,900. If there is a fresh decline below $7,800, the price could move back in a bearish zone. It may also diminish the chances of a break above $8,200.Technical indicators:Hourly MACD – The MACD is losing momentum in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level and is moving higher.Major Support Levels – $7,800 followed by $7,700.Major Resistance Levels – $7,950, $8,000 and $8,080.
Archives for June 11, 2019
Christopher Brookins is the founder of Valiendero Digital Assets, a quantitative crypto fund founded out of Carnegie Mellon.
2019 has not only seen a resurgence of the crypto bull, but also capital raising.
In particular, IEOs or “Initial Exchange Offerings” have been highly visible for both good and bad reasons. Positively, IEOs have produced large returns to-date. Negatively, to quote Jeff Dorman at Arca, “Many argue (correctly) that IEOs are illegal (in the US) since the tokens are clearly securities, & unregulated exchanges are acting as broker/dealers.
Thus, U.S. investors can’t participate.” However, despite legality issues for US investors, many global participants are still actively investing in these offerings due to their return potential. So, what is driving prices?
New and small-cap (less than $100M in market cap) digital assets are highly reflexive and driven by two key variables, exchange volume (ExVol) and market cap (MCAP). The logic being that the greater the buying volume in relation to the asset’s overall market cap, the greater the potency of its reflexivity cycle (see below).
The aforementioned speculative demand can be quantified by the ratio of ExVol to MCAP, which may offer investors a better tool to gauge risk and reward in these speculative assets.
The chart below displays the correlation of the speculative demand ratio (ExVol to MCAP) to in price of several IEOs. The chart is broken down into distinct time periods, which shows the efficacy of the ratio as the asset matures, e.g. first 60 days, first 180 days, first 360 days, and historical (since inception).
Please note, reliable MCAP data for newer IEOs like MATIC, FET, and CELR does not span 60 days, thus only historical is calculated.
This time, the chart below displays the correlation of the speculative demand ratio (ExVol to MCAP) to in price of several small-cap assets as a way to generalize the ratio to all new issuances, not just IEOs in 2019.
As the aforementioned charts illustrate, the speculative demand ratio is a highly valuable signal for investors looking at IEOs or new digital assets, especially during the first 180 days of existence. Post-180 days, the ratio is still useful for price prediction, but its signal diminishes. Presumably, as an asset matures, fundamentals influence price more, e.g. bitcoin’s historical correlation to in price is only 0.02.
However, for newer IEOs like MATIC, CELR, and FET, the correlation of the speculative demand ratio is likely to rise over the coming months. Thus, current or potential investors should closely monitor the ratio’s trend as a directional gauge of risk and reward.
Disclaimer: this article is for educational purposes only and should not be considered investment or trading advice.
The author holds bitcoin and ether at the time of writing.
Ripple price started a short term recovery from the $0.3686 swing low against the US dollar.The price traded above the $0.4000 level, but it failed to surpass the $0.4050 resistance.There is a key contracting triangle forming with resistance near $0.3960 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair could either break the $0.4050 resistance or decline again below the $0.3800 level.Ripple price is currently consolidating in a range against the US Dollar, similar to bitcoin. XRP must break the $0.4000 and $0.4050 resistance levels to continue higher in the near term.Ripple Price AnalysisAfter a major decline, ripple price found support near the $0.3680 area against the US Dollar. The XRP/USD pair traded as low as $0.3686 and recently started an upside correction. There was a break above the $0.3800 and $0.3900 resistance levels. The price even broke the $0.4000 level, but the $0.4050 level acted as a strong resistance. A swing high is formed near $0.4048 and the price is currently well below the 100 hourly simple moving average.There was a downward move below the $0.4000 level and the 23.6% Fib retracement level of the recent wave from the $0.3686 swing low to $0.4048 high. Ripple price even broke the $0.3900 level and spiked towards $0.3800. It seems like the 50% Fib retracement level of the recent wave from the $0.3686 swing low to $0.4048 high is currently acting as a support. Moreover, there is a key contracting triangle forming with resistance near $0.3960 on the hourly chart of the XRP/USD pair.On the upside, the triangle resistance, $0.4000, and the 100 hourly SMA holds the key. A successful close above the 100 hourly SMA could trigger more gains. If there is a follow through above $0.4050, the price is likely to accelerate above the $0.4100 level. The next stop for the bulls could be $0.4220. Conversely, if there is a downside break below $0.3850 and 61.8% Fib retracement level of the recent wave from the $0.3686 swing low to $0.4048 high, then there could be more losses.Looking at the chart, ripple price is currently consolidating below $0.4000 and $0.4050. The bulls need to gain pace above $0.4050 to start a fresh increase. If they continue to fail, the price is likely to move down below $0.3850 and $0.3800 in the near term.Technical IndicatorsHourly MACD – The MACD for XRP/USD is slowly moving back in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level, with a bearish angle.Major Support Levels – $0.3850, $0.3820 and $0.3700.Major Resistance Levels – $0.3960, $0.4000 and $0.4050.
Cryptocurrency exchange Coinbase has expanded its Visa debit card service to six European countries, allowing customers in the region to spend their digital assets.
According to a report from CNBC on Wednesday, the Coinbase Card is now available for users in Spain, Germany, France, Italy, Ireland, and the Netherlands.
With the card, customers will be able to spend their cryptocurrency assets including bitcoin, ethereum, and litecoin in both online and physical stores that accept Visa.
Coinbase first rolled out a cryptocurrency Visa debit card in April, exclusively for users based in the U.K. at the time.
Zeeshan Feroz, CEO of Coinbase U.K., did not disclose how many users the firm had signed up since April but said in an interview with CNBC that it had “blew past” the initial 1,000 cards issued to customers for free.
As previously reported by CoinDesk, Coinbase Cards are linked to a mobile app available on both Android and iOS devices, in which customers can select which type of cryptocurrency they would like to use to fund each spending.
That said, customers are not directly paying merchants with crypto assets. Instead, Coinbase charges a fee to help convert users’ cryptocurrencies into a fiat currency, i.e. euro in the new offering.
The firm partners with PaySafe, a U.K. payment processor, to issue the cards, a Coinbase spokesperson told CoinDesk before.
Image courtesy to Coinbase
While a recent poll shows that the majority of crypto investors have never experienced a transition from a bear market into a bull run, it’s clear that’s what’s transpiring across the crypto market in recent weeks, as the price of Bitcoin continues to climb upward and away from the bottom set back in December 2018.
Litecoin (LTC) has been incurring significantly bullish price action over the past several weeks, marking a continuation of the significant gains it has incurred so far this year. The primary factor driving the recent gains, it seems, is its upcoming mining reward halving, which is widely viewed as a bullish event.Now, analysts believe that Litecoin could incur further upwards momentum in the near-future, which may allow it to continue setting higher highs.Litecoin Surges to Fresh Year-to-Date HighsAt the time of writing, Litecoin is trading up over 7% at its current price of $136 and is up significantly from its 24-hour lows of below $125.While looking at the cryptocurrency’s price action over a longer time frame, it quickly becomes apparent as to just how bullish LTC has been compared to the rest of the markets.In mid-December of 2018, Litecoin plummeted to lows of $23, which coincided closely with the entire market downturn that sent Bitcoin reeling to lows of roughly $3,000. Since then, Litecoin has skyrocketed higher, and is continuing to set fresh year-to-date highs.Although many analysts grow weary of cryptocurrencies that surge while the rest of the markets are caught in a price lull, LTC may be an exception, due to its upcoming mining reward halving that is currently set to occur in the next couple of months.Luke Martin, a popular cryptocurrency analyst on Twitter, spoke about Litecoin in a recent tweet, explaining that he believes LTC could surge past 0.0182 BTC in the near future, which is above its current price of 0.0172.“LTC momentum continues. Still think it can reach the .0182 swing high. Plenty of time to break past that as well imo,” he noted.$LTC momentum continues.Still think it can reach the .0182 swing high. Plenty of time to break past that as well imo. pic.twitter.com/mnW1dzM3Ca— Luke Martin (@VentureCoinist) June 11, 2019Analyst: LTC May Jump To $150 in Near FutureMartin is not alone in his belief that Litecoin may surge higher in the near future, with another popular analyst explaining that he believes the crypto could surge to $150 next.Harry, a popular analyst who focuses primarily on XRP’s price action, spoke about LTC in a recent tweet, noting that it may continue surging higher as anticipation for the halving event balloons.“$LTC similar structure to $ETH where I picked sell off’s in the $270 range. I’m putting this one out early, take a good look at the chart and potentially consider some incremental selling in the $140-150 range. Shorts are going to be very active there,” he noted.$LTC similar structure to $ETH where I picked sell off’s in the $270 range. I’m putting this one out early, take a good look at the chart and potentially consider some incremental selling in the $140-150 range. Shorts are going to be very active there @360_trader x— Harry (@HaraldoXRP) June 11, 2019It is important to note that LTC is currently moving independently of the aggregated crypto markets, which may mean that Bitcoin will likely have little impact on where it goes next.Featured image from Shutterstock.
The world of crypto assets is often a rather daunting and confusing place. As a newcomer, it can be difficult to hone in on good information to start your Bitcoin educational journey off right.With that in mind, we thought we’d put together this reading list of resources aimed to help newbies find their feet in crypto quicker. Every individual armed with good information and a passion for Bitcoin is a promotional asset to the wider digital currency movement, which, of course, we’d love to see grow.Expand Your Bitcoin Knowledge, Fast!In an effort to promote greater Bitcoin understanding globally, respected advocate of the space and CasaHODL CEO, Jameson Lopp has just overhauled one of the space’s best resources for those wanting to get started in digital currency. Lopp Tweeted the following of the website redesign earlier today:https://t.co/8ZsrcEwSfa has been reorganized to improve readability and scalability – 500 links on a single page was a bit much! Still plenty of work to do, but feedback is appreciated.— Jameson Lopp (@lopp) June 11, 2019Lopp’s list of resources is reportedly open source and the coder and CEO requests that feedback on the material be submitted via GitHub. It is an ideal first stop for a budding crypto enthusiast or further learner and has pages dedicated to beginner concepts, along with much more advanced literature focused on mining, understanding how fees are calculated, and even working out what taxes you might owe through investing or trading.The material Lopp has sourced is from a variety of different contributors and is presented in both original documents – such as the Bitcoin Whitepaper itself – along with video summaries of different concepts and numerous articles. Conveniently, Lopp has labelled different resources as “non-technical”, “a bit technical”, etc.Another resource we recommend for those absolute beginners wanting to get an overview of the potential impact that Bitcoin could have on the planet is Andreas Antonopoulos’s second book on Bitcoin, The Internet of Money. We recommend starting with his second book since it has been comprised of talks by the computer scientist, often delivered to rooms full of people without technical backgrounds. As a primer to the subject, it’s a relatively easy read that has no doubt been responsible for the enduring crypto passions of many readers.For those wanting to delve more into the computer science side of digital currency, Antonopoulos’s first book, Mastering Bitcoin, is perfect to start thinking about actually building applications on the Bitcoin network. Be warned, however, after the first few chapters, the author does get highly technical. We’d only recommend a deep dive into this one if you have an interest in creating applications, have a strong background in coding, or have read everything else you can get your hands on. This first chapters are also useful for starting to understand some technical aspects of Bitcoin from the layperson’s perspective. However, it does get deep pretty quickly.If you’re more interested in the implications of Bitcoin set in historical context, we recommend Saifedean Ammous’s book, The Bitcoin Standard: The Decentralized Alternative to Central Banking. In his work, the Lebanese professor of economics discusses the current fiat monetary system as an historical anomaly. He looks at how economies of yesteryear that were based on sound money – gold – were able to prosper and how a future economy backed by Bitcoin could create a shift in the very consuming habits of humanity. He argues that hard money – gold, Bitcoin – encourage people to save rather than spend. This in turn could reduce the rampant consumerism that much of society is based around today and that is systematically destroying the delicate ecosystem in which we live through waste and unnecessary manufacturing.Ammous’s book has been criticised by some for brushing over certain aspects of history to suit the Austrian economic narrative that the author obviously identifies with. Whilst we definitely recommend giving it a read if you’re wanting to understand more about where Bitcoin could be heading and why it is an important reaction against fiat currency, we also recommend taking a critical eye to the text, rather than receiving it as gospel.Finally, if you have little ones and you want to get them started in the world of crypto, all of the above might be a little overwhelming for them. For these young learners, we recommend the recently penned, B is for Bitcoin. Author and crypto enthusiast Graham Moore explains his work in the following video.This book might have your kid mining Bitcoin by their next birthday. pic.twitter.com/Sv1zzgIFQZ— VICE Canada (@vicecanada) June 4, 2019As you can see, B is for Bitcoin is certainly simplified and will introduce important concepts to your kids. However, as a parent, unless you’re up-to-speed with the other resources listed above you might find your little one asking you a few potentially awkward questions. Put simply, when you get up to “D is for Decentralise…. all of the things” you’re probably going to at least need to explain the concept of decentralisation in a way that a very young child can understand, as well as exactly why it’s perceived as being an important quality. So, you’d better hit the books first then! Related Reading: Bitcoin Becomes “Money,” One Satoshi Now More Valuable Than Some National CurrenciesFeatured Image from Shutterstock.
DOrg, a company that builds DAO-related software founded by Ori Shimony, Asgeir Sognefest, and Jordan Ellis, has created what it calls the first Limited Liability Decentralized Autonomous Organization or DAO, a legal way to “reference blockchain code (smart contracts in our case) as the legitimate source of authority for their company’s operations and governance.”
The process melds the complexities of a DAO with the legal protections afforded to limited liability companies.
“After deploying its DAO to the Ethereum blockchain, dOrg formed a Blockchain-Based Limited Liability Company (BBLLC) in Vermont, dOrg LLC. By linking the DAO to this BBLLC, the DAO has official legal status, allowing it to enter contractual agreements and offer participants liability protections,” wrote the founders in a release.
The company is a cooperative of blockchain devs that builds DAO-related software. They claim that with this new legal framework users can create a legally registered DAO as easily as creating a “social media account.”
“We realized that Vermont’s BBLLC law was unique in carving out the option for companies to reference blockchain code (smart contracts in our case) as the legitimate source of authority for their company’s operations and governance,” said Shimony. “The Operating Agreement establishes that the Company will only accept requests to perform services for Clients, allocate work and renumeration to Participants, add new Participants, and distribute voting rights through the DAO’s decision-making engine.”
“We worked extra diligently to make sure that all legal agreements were very lightweight yet created no backdoors or special privileges that could short-circuit the authority of the DAO,” he said.
The team plans to share the process so anyone can create legally licensed DAOs. While they are a DAO software dev shop, it an intestine move that could make the creation of decentralized organizations easier and safer for users and investors.
Image via Shutterstock.
Bitcoin has once again failed to break back into the $8,000 region, signaling that this price level will remain a level of resistance for the foreseeable future. Importantly, BTC has still been able to hold above $7,600, which appears to have become a strong level of support for the cryptocurrency.Related Reading: Analysts are Still on Edge About Potential Bitcoin Collapse Despite MomentumNow, analysts believe that Bitcoin may be finding itself in a relatively tight trading range that may continue to persist for the time being, which may signal that the volatility that the markets have been experiencing as of late is coming to an end for the time being.Bitcoin Continues Finding Support Around $7,600 Despite Increasing Selling PressureAt the time of writing, Bitcoin is trading down nearly 2% at its current price of $7,800, down slightly from 24-hour highs of just over $8,000.While looking at BTC’s price action over the past week, it is clear that the cryptocurrency is currently in between two firmly established levels of support and resistance, as it has been oscillating between $7,600 and $8,000, which may turn into a long-term trading range that persists for the near future.The Wolf of All Streets, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes Bitcoin may find itself caught between the aforementioned trading range for the foreseeable future as it enters “full sideways mode.”“$BTC Go outside, enjoy your day. Set alarms for the top and bottom of this range. We are in full sideways mode, as price just bounced right off of the EQ of this range,” he explained.$BTCGo outside, enjoy your day. Set alarms for the top and bottom of this range. We are in full sideways mode, as price just bounced right off of the EQ of this range. pic.twitter.com/nuYS5zVFrD— The Wolf Of All Streets (@scottmelker) June 11, 2019Analyst: BTC Faces Multiple Levels of Strong Resistance Above $8,000Although $8,000 is the key resistance level that analysts are closely watching for the time being, there are multiple other levels of resistance that exist just above this price that may require a significant influx of buying pressure to be broken above.Josh Rager, another popular crypto analyst on Twitter, discussed these resistance levels in a recent tweet, explaining that the bullishness of a move above $8,000 may be tempered by resistance around $8,200.“$BTC Update: The new resistance to look at is $8017 for Bitcoin. With a close above here, it has a chance to then push and close above $8200 which would be bullish to move to $8550’s. Mid-channel is currently holding as support. Close below $7600 is bearish (4 hr chart),” Rager explained.$BTC UpdateThe new resistance to look at is $8017 for BitcoinWith a close above here, it has a chance to then push and close above $8200 which would be bullish to move to $8550’sMid-channel is currently holding as supportClose below $7600 is bearish (4 hr chart) pic.twitter.com/nemH37Wy4K— Josh Rager 📈 (@Josh_Rager) June 11, 2019As the week drags on and Bitcoin continues to bounce between the aforementioned levels of support and resistance, it is likely that traders will begin gaining better insight into whether or not the markets will be able to further extend their upwards momentum throughout the Summer months.Featured image from Shutterstock.
Old Mutual, a legacy, pan-African insurance company, announced it will not insure equipment used for cryptocurrency mining, according to a statement released June 10. The company cites the expense, risk, and speculative nature of the industry.
Africa contributes less than 10 percent of the total bitcoin hash rate, according to Bitcoin Magazine. Many advocates for the fledgling industry think strict regulations, costly electricity prices, and mining rig price tags are preventing it from developing — a problem that will only get worse if miners cannot take out protection on their gear.
Old Mutual is not the first to ban coverage for mining equipment or price premiums outside the reach of many hobbyists. Cryptocurrencies are often considered an asset class with a different risk profile than other forms of capital, and may carry premiums that reflect that risk.
Following extensive research, as well as an in-depth review of claims from clients that have incurred losses to equipment used for cryptocurrency mining, Old Mutual said it has begun advising its branches not to insure any businesses involved with the industry.
“We have chosen not to provide cover for this type of risk as it is quite tricky to conduct a proper risk analysis of an unregulated fledgling industry that is already on the radar of financial authorities due to the unfortunate association with money laundering and cyber crime,” said Old Mutual insurance expert Christelle Colman.
The insurer notes crypto mining operations typically utilize high-cost computers, servers and other equipment modified to run heftier application-specific integrated circuit devices that can overload the computer’s central processing units or graphic processing units. Furthermore, running a system continually, which the company alleges is industry practice, introduces risks of overheating and other malfunctions.
“Even doing a comprehensive inventory of the insured equipment is difficult because the value of the highly modified computer equipment is typically inflated and almost impossible to verify as it is usually imported from obscure suppliers in the Far East,” said Colman.
Old Mutual is also concerned about the volatile, unregulated nature of the industry, which is often associated with speculative trading companies — prone to going bust — or worse, cyber crime.
Although insurers have come down on protecting mining equipment, CoinBase recently announced it has taken out $255 million for coins held in hot wallets on behalf of their customers — signaling willingness by insurance companies to enter other crypto sectors.